More vacation homes sold in the Netherlands last year for the first time since 2020

Last year saw a rise in vacation homes being sold in the Netherlands for the first time since 2020. In total, almost 4,600 vacation homes changed owners, which is 15 percent more than in 2023, the Netherlands' Cadastre, Land Registry and Mapping Agency reported on Thursday.

The average sales price for the recreational homes was 245,000 euros last year, almost 10 percent higher than in previous years. This means the prices of these homes have risen slightly more than those of regular homes, which increased in value by an average of 8.7 percent.

More than 80 percent of vacation homes were purchased without a mortgage. The share of homes sold without a mortgage even rose to 95 percent for homes priced under 100,000 euros. Around two-thirds of all vacation homes are owned by private individuals.

According to the Land Registry, demand for vacation homes has increased in recent years due to an aging population, rising incomes, higher housing prices, and the tight housing market.

“There is increased pressure on governments to allow temporary or permanent living at holiday parks. The Minister of Housing and Spatial Planning, Mona Keijzer, sees the legalization of permanent residence in vacation homes as something that can contribute to solving the housing shortage,” the institution said.

The real estate association NVM already reported in April that the Dutch vacation home market showed a “notable recovery” last year. This comes despite dampening factors such as the high transfer tax, uncertainty around the tax surcharge, and the planned VAT increase from 9 to 21 percent on recreational rentals. “The market for vacation homes appears to be less sensitive to the relatively unfavorable tax climate and seems to be following the trends of the regular housing market,” the NVM stated at the time.

The rising demand for vacation homes could also be a precursor for tougher times ahead, the real estate agents warned. “The recreational home seems to be the milking cow for the government, with no clarity on what measures might be coming.”

Rental income from vacation homes is currently tax-free. Whether that will remain the case is uncertain, as landlords may soon be taxed on their actual returns. The debate on this issue is still ongoing in The Hague.